The number of law firms in England and Wales has dropped below 9,000 for the first time in recent history amid continuing consolidation, a long-running regular market study has revealed. However the consolidation came amid continued growth in the market for legal services, which rose by 6.1% in 2025 at current prices.
According to the 16th edition of the UK Legal Services Market Trends Report, published by IRN Legal Reports, turnover of all businesses engaged in legal activities amounted to £55.5 billion in 2025. This represents a rise of 50% since 2020. Legal services inflation in 2025, while lower than in 2024, 'was still some way above the general UK increase in prices', the report states.