Angharad Warren, Director, reviews the West Midlands legal market in 2025 and shares her predictions for 2026.

From Angharad Warren

The West Midlands legal market strengthened further in 2025, building on the recovery seen in 2024. Transactional teams enjoyed a notably busier year, with real estate continuing its upward trend and commercial development, residential development and investment work all gaining momentum.

Corporate activity also improved, with mid-market transactions driving hiring demand, particularly at the mid to senior level.

Construction lawyers remain in high demand, though private practice is increasingly competing with in-house employers for top talent.

Property litigation remained busy, especially housing litigation, though opportunities for general commercial litigators stayed limited. Employment teams were particularly active, driven by the wave of new employment regulations introduced throughout 2024-25, which prompted increased advisory, policy and tribunal-related work.

Construction lawyers, as ever, remain in high demand, though private practice is increasingly competing with in-house employers for top talent. Planning was busier than it has been in several years, while public procurement saw another strong upswing following implementation of the Procurement Act.

Challenging environment for NQs

NQ recruitment unfortunately remained extremely challenging across most practice areas, especially corporate, commercial, IP and employment, which had very low NQ vacancy levels. Real estate NQ roles were also unusually scarce, with firms reporting 50+ applications for each position.

NQ recruitment unfortunately remained extremely challenging across most practice areas.

Mid-level hiring was strong across most commercial areas, with firms prioritising Legal Director and Partner hires to support growth. Team moves were more common, particularly in real estate, corporate and disputes, as firms sought critical mass in key areas.

Market developments

Firms continued to take on new office space or renegotiate their Birmingham footprints, with a clear trend toward higher-quality, amenity-rich environments and enhanced collaboration and client areas.

Hybrid working continued to evolve, with three days in the office now the minimum expectation at many firms.

Salaries saw modest increases, particularly among mid-tier firms catching up with national and international competitors. Hybrid working continued to evolve, with three days in the office now the minimum expectation at many firms.

London remains a draw, though increased office requirements have made commuting more difficult, and London firms are increasingly reluctant to hire lawyers who do not intend to relocate fully.

Investment

In-house teams continued to grow, particularly in tech, manufacturing, construction, energy and financial services, drawing more lawyers from private practice and further reducing the proportion working in private practice law firms.

A major development in 2025 was HCR Law’s acquisition of Wright Hassall following its entry into pre-pack administration.

The deal expands HCR’s Midlands presence and reflects the increasing consolidation across the regional market, with larger national firms absorbing established mid-sized practices. It also reflects growing pressure on independent firms and the competitive advantages held by those able to invest in scale, infrastructure and technology.

2026 is expected to deliver ongoing momentum across real estate, corporate, construction and procurement, alongside continued appetite for senior-level talent, further growth of in-house teams and greater adoption of AI.

Ward Hadaway opened a new Birmingham office in mid-2025, its first base outside the North of England, which has triggered a significant senior hiring push as it builds a full-service regional practice.

TLT has also continued its rapid growth in Birmingham since opening in 2023. By 2025 the office had doubled in size to around 50 staff, reflecting strong performance across corporate, real estate, litigation, employment and financial services.

Looking ahead, 2026 is expected to deliver ongoing momentum across real estate, corporate, construction and procurement, alongside continued appetite for senior-level talent, further growth of in-house teams and greater adoption of AI across the sector. The regional outlook is strong, and we remain hopeful that the coming year will offer more opportunities to newly qualified solicitors.

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