2024 was an uneven year in the London legal market; some practice areas—such as finance—were strong at certain times, while others—such as private equity—did not achieve the levels of activity initially predicted at the start of the year.

Broadly, we expect there to be cautious growth in London in 2025 – certainly in the first half. US-headquartered firms are likely to continue to drive demand for legal talent at all levels. Firms such as Paul, Weiss have captured market share in the City and have achieved significant progress over the past year.

Corporate: The outlook for M&A is positive. President Trump’s election has led to an uptick in transactional work for law firms. If the UK economy continues on its path to recovery – with controlled inflation and base interest rates having dropped twice (and widely predicted to be on a downward trajectory), international buyers are likely to maintain their interest in UK investments. Private equity firms, having held onto assets longer than usual, are poised for exits – they have amassed significant capital that needs deployment.

Competition: This area was busy in the second half of 2024 and this is predicted to continue, as companies navigate a rapidly evolving landscape. In the UK, new legislation (the UK’s Digital Markets, Competition, and Consumers Act) came into force on 1 January 2025. This expands the powers of the CMA in respect of merger control, digital markets, competition and consumer protection. In the US, while the Trump administration will likely allow more mergers to go through, it will probably continue the Biden administration’s practice of investigating and litigating antitrust claims against large companies. Other countries, including China, India, and Brazil, are enhancing their competition laws and becoming more active in antitrust investigations. Despite economic uncertainty, mergers and acquisitions are likely to continue in 2025, and many of these deals will attract antitrust scrutiny.

Employment: We saw some activity in this practice area throughout 2024 and this uptick is expected to continue as employers will need to keep up with the wave of legislative reforms in the Employment Rights Bill, Data (Use and Access) Bill and, once introduced in draft, the Equality (Race and Disability) Bill and beyond.

Funds: In 2024, the majority of noteworthy hiring took place at the senior level in London, with Weil, Paul Weiss, Proskauer and Debevoise amongst the firms that recruited partner talent. There is real confidence in a notable resurgence in the fund formation landscape as we push through 2025 – driven by several key factors (including improved financing conditions, increased corporate and transaction levels, the impact of geopolitical influences and investor sentiment).

Finance: The London debt and leveraged finance market is set to experience a year of growth and opportunity in 2025. Factors including easing monetary policies, increased LBO activity and improved credit profiles are expected to drive deal flow. The finance practice area saw a significant uptick in the second half of 2024 with law firms vying for legal talent; teams in the City will continue to offer sophisticated client solutions and seek to recruit legal talent to help service an increasingly discerning client base.

Disputes: The City’s well established legal framework, expertise, and role as a financial hub and leading seat for international arbitration means that London will continue its attractiveness as a centre for dispute resolution – especially across commercial litigation, international arbitration, insolvency, and in emerging areas like ESG and technology-related disputes. In addition there is an impressive increase in class action disputes across a range of sectors, in particular, consumer protection, competition, environmental claims, and data protection. Despite the apparent buoyancy in the sector, international firms remain committed to recruit the crème de la crème of talent and that trend is unlikely to change much over 2025. In addition—with the exception of international arbitration—it can be very hard for an international lawyers to break into the London market.

Energy & Projects: Unsurprisingly, given the global push towards decarbonization and energy transition, 2025 is likely to see accelerated growth in renewable energy, digitalisation, and electrification. To meet future energy demands and achieve sustainability goals, governments, private companies, and investors will need to collaborate to ensure that all necessary infrastructure and technological advancements are in place. This is likely to lead to an increase in demand for lawyers who specialise in energy (including M&A/PE lawyers), projects, and project finance. 2024 saw the demand for these lawyers increasing and we expect the need to grow further this year. Given the cross-border nature of the sector, firms in London will be as likely to consider internationally-qualified lawyers as London trained associates.

If you are a partner or associate looking to make a move in the London legal market in 2025, please contact one of our experienced team.