Here at Marks Sattin Legal, we like to do things a little differently. Yes, we are legal recruiters, but we also see ourselves as consultants, using our market insight to help clients and candidates navigate an ever-changing landscape. That’s exactly why MS Legal News was created – to share the trends we’re seeing on the ground and, hopefully, spark meaningful conversation.
So, where to start?
Reflecting on 2025, it’s been a fascinating year for the in-house legal market, particularly in how differently Commerce & Industry and Financial Services have evolved. While both markets have been shaped by economic pressure, technology and shifting candidate expectations, the story in each has been quite distinct.
C&I vs Financial Services
In Commerce & Industry, the defining theme has been breadth. In-house lawyers are being pulled deeper into the business than ever before, moving beyond traditional advisory roles to become genuine commercial partners. We’ve seen strong demand for lawyers with solid corporate foundations who are comfortable wearing a broader hat, supporting M&A, governance and strategic decision making.
While salary pressure remains a challenge compared to private practice, particularly at junior to mid-level, PE-backed and high-growth businesses are increasingly stepping up with more competitive packages. Culture, flexibility and the opportunity to make a real impact are proving just as powerful as pay.
Financial Services, by contrast, has been about recovery and specialism. After a quieter period, hiring has picked up again across banks, insurers, fintechs and investment managers. Demand here is far more niche, regulatory specialists, fintech and payments experts, and lawyers with crypto and digital assets experience are particularly sought after as regulation tightens and these markets mature.
Salaries at senior level are becoming more competitive with private practice, but what’s really standing out is how much weight candidates now place on flexibility and culture. Hybrid working is no longer a perk, it’s simply expected.
Key trends that defined 2025
One of the most significant shifts has been the widespread adoption of AI and automation within in-house teams. Generative AI and legal workflow tools are now central to daily operations, helping teams automate contract review, reduce repetitive work and surface risk faster.
Why does this matter? Because it’s fundamentally changing the role of the in-house lawyer, shifting the focus away from execution and towards higher-value, strategic thinking.
Alongside this, organisations are becoming far more aggressive in managing external legal spend. More work is being brought in-house, and many businesses are investing in tools and alternative providers to reduce reliance on outside counsel. This increases the influence of in-house teams, but also raises workload and expectations around efficiency.
The market in 2025 has also become far more competitive. Candidates are more proactive, more mobile and more informed, but the number of approved roles has not kept pace. This has created intense competition, particularly at mid-career level, where a large cohort of 5–10 PQE lawyers are competing for a limited number of step-up opportunities.
Finally, the political landscape, particularly US tariffs and global trade tensions, has added another layer of complexity. Uncertainty has pushed many businesses to delay senior legal hires, favouring interim, fractional or external support while they wait for greater stability.
Looking ahead: predictions for 2026 and beyond
As we move into 2026, the UK legal hiring market is expected to continue to pick up, but the nature of competition will keep evolving.
A rise in mid-senior to senior in-house hiring. After the cautious, cost-controlled approach that defined much of 2025, many organisations are now coming out the other side. Budgets are being reviewed, headcount plans revisited, and as markets begin to stabilise, we expect delayed senior hires to start coming back into the system.
In-house employers will increasingly win talent through culture, flexibility and career development rather than salary alone. Hybrid working, bespoke benefits and equity participation will become important factors, while the real differentiator will be the quality of thinking environments businesses create.
In Financial Services, we expect sustained growth in digital assets, crypto and investment management hiring as regulation matures and these markets expand. In Commerce & Industry, demand will continue to rise for commercially minded, technologically fluent lawyers who can operate across legal operations and cross-functional decision-making, particularly in scale-up environments.
At the same time, AI-led knowledge platforms will continue to mature such as Harvey, Legora and Copilot. As tools become embedded in everyday workflows, trust will become the central challenge. In-House companies with strong, well-structured foundations will be best placed to harness AI confidently, while fragmented systems risk undermining both lawyer confidence.
Conclusion
Overall, the legal market in 2026 will be shaped as much by mindset as by hiring strategy. The organisations that stand out won’t simply be those that pay the most, but those that create cultures where people feel trusted, supported and able to grow. As the role of the in-house lawyer continues to evolve, those who are commercially minded, tech-savvy and comfortable working across the business will be most in demand. Ultimately, success will come down to building environments where people, ideas and innovation can genuinely flourish.
Get in touch
Visit our dedicated legal page to discover how we can support your hiring needs. Alternatively, submit a brief here and we will call you to discuss your needs.
29/01/26
Signup to receive the latest discipline specific articles
