London Market Update - Summer 2025
London Market Update - Summer 2025
Anthony Matthews
11 July 2025
The first two months of 2025 began reasonably positively in the London market in terms of associate hiring. We’ve seen this slow down as we move towards the middle of the year. Although there are a number of factors that have caused this, a good way of summarising would be Trump hope vs Trump reality and the impact this causes on global transactional activity. We expect the summer to remain relatively quiet in terms of domestic and international hiring but September is always a good barometer of how busy the market actually is.
Salary Increases
Over the last few weeks, we have seen the majority of top-tier City and silver circle firms increase their salaries. We also wrote an article looking at the evolution of London salaries which can be found at this link - https://www.linkedin.com/pulse/associate-salaries-london-matthews-and-carter-associates-rwssf/?trackingId=bcM5JL4Gj%2FWe%2FzkJ93zxvg%3D%3D The general trend is that silver circle firms are now paying £130-£140k at NQ and senior associates are earning around £175k. Most top-tier City firms will now pay £100k+ at NQ. The magic circle are yet to react and it will be interesting to see if they do. The only guarantee will be that Slaughter and May will react last!
The Trump Impact on Firms
The major story in New York this year has been about Donald Trump and his relations with some of the Biglaw players in Manhattan. Although firms will argue that they had to cut a deal to remain profitable, the PR hit could affect recruitment moving forward and we have seen some senior moves as a result of this. US firms affected by this in London have been quick to emphasise that although some diversity wording has changed, their commitments to diversity and inclusion are solid and have distanced themselves, on this front, from the New York offices.
NQ Retention Rates
Unfortunately, a lot of correspondence that we are receiving currently is from 4th seat trainees who haven’t been kept on by their firm. All indications are that the NQ retention percentages will be poor across the board this year. This is just another indicator of a slower market but it can be very hard for those that have dedicated an awful lot of time and effort into a firm. Our advice to those that haven’t been kept on is to not be too picky at this time. A legal career is a long and winding road but that first foot on the ladder can be the most important thing!
Change in Lockstep Partnerships
We’ve seen the continuation of partnership structure change with the US firms. Kirkland & Ellis used to be outliers with associates becoming salaried partners around the 6PQE level but it is becoming more and more common with other US firms. This becomes a much more attractive form of remuneration for rainmaker partners in more traditional lockstep models. An interesting article outlining these changes can be found at this link - https://www.law.com/international-edition/2025/03/03/skadden-debevoise-consider-implementing-non-equity-partnership-tier-/?slreturn=20250704055145. Firms are having to become much more competitive in their remuneration structures as partner movement is at an all-time high.
Branding Refresh
For the first time in 9 years, we’ve changed our logo and branding over the last few weeks. We have wanted to make something more recognisable and iconic and hopefully this has been achieved. Look out for Anthony sporting the new hats in Australia and Singapore over the next month!
Overseas Recruitment
There hasn’t been much change in firm’s policies for hiring overseas candidates. Generally, the core areas of finance and corporate have remained reasonably strong for foreign qualified associates with rising areas such as corporate tax and FS reg becoming more popular. As always, the busier the market is, the more likely firms are hiring overseas talent. Dublin remains a good alternative to London and firms are continuing to hire from overseas albeit at a slower rate than this time last year.
Singapore & Australia Trip
We will be returning to Singapore and Australia later this month and in August. If you are located in any of the following and would like to discuss overseas options, e-mail: anthony.matthews@matthewsandcarter.com to set up a coffee. If you are a British or Irish lawyer who will also be in town for the rugby, don’t hesitate to get in touch
Tuesday 15th – Thursday 17th July: SINGAPORE
Monday 28th & Tuesday 29th July: MELBOURNE
Thursday 31st July & Friday 1st August: PERTH
Monday 4th – Thursday 7th August: SYDNEY
The first two months of 2025 began reasonably positively in the London market in terms of associate hiring. We’ve seen this slow down as we move towards the middle of the year. Although there are a number of factors that have caused this, a good way of summarising would be Trump hope vs Trump reality and the impact this causes on global transactional activity. We expect the summer to remain relatively quiet in terms of domestic and international hiring but September is always a good barometer of how busy the market actually is.
Salary Increases
Over the last few weeks, we have seen the majority of top-tier City and silver circle firms increase their salaries. We also wrote an article looking at the evolution of London salaries which can be found at this link - https://www.linkedin.com/pulse/associate-salaries-london-matthews-and-carter-associates-rwssf/?trackingId=bcM5JL4Gj%2FWe%2FzkJ93zxvg%3D%3D The general trend is that silver circle firms are now paying £130-£140k at NQ and senior associates are earning around £175k. Most top-tier City firms will now pay £100k+ at NQ. The magic circle are yet to react and it will be interesting to see if they do. The only guarantee will be that Slaughter and May will react last!
The Trump Impact on Firms
The major story in New York this year has been about Donald Trump and his relations with some of the Biglaw players in Manhattan. Although firms will argue that they had to cut a deal to remain profitable, the PR hit could affect recruitment moving forward and we have seen some senior moves as a result of this. US firms affected by this in London have been quick to emphasise that although some diversity wording has changed, their commitments to diversity and inclusion are solid and have distanced themselves, on this front, from the New York offices.
NQ Retention Rates
Unfortunately, a lot of correspondence that we are receiving currently is from 4th seat trainees who haven’t been kept on by their firm. All indications are that the NQ retention percentages will be poor across the board this year. This is just another indicator of a slower market but it can be very hard for those that have dedicated an awful lot of time and effort into a firm. Our advice to those that haven’t been kept on is to not be too picky at this time. A legal career is a long and winding road but that first foot on the ladder can be the most important thing!
Change in Lockstep Partnerships
We’ve seen the continuation of partnership structure change with the US firms. Kirkland & Ellis used to be outliers with associates becoming salaried partners around the 6PQE level but it is becoming more and more common with other US firms. This becomes a much more attractive form of remuneration for rainmaker partners in more traditional lockstep models. An interesting article outlining these changes can be found at this link - https://www.law.com/international-edition/2025/03/03/skadden-debevoise-consider-implementing-non-equity-partnership-tier-/?slreturn=20250704055145. Firms are having to become much more competitive in their remuneration structures as partner movement is at an all-time high.
Branding Refresh
For the first time in 9 years, we’ve changed our logo and branding over the last few weeks. We have wanted to make something more recognisable and iconic and hopefully this has been achieved. Look out for Anthony sporting the new hats in Australia and Singapore over the next month!
Overseas Recruitment
There hasn’t been much change in firm’s policies for hiring overseas candidates. Generally, the core areas of finance and corporate have remained reasonably strong for foreign qualified associates with rising areas such as corporate tax and FS reg becoming more popular. As always, the busier the market is, the more likely firms are hiring overseas talent. Dublin remains a good alternative to London and firms are continuing to hire from overseas albeit at a slower rate than this time last year.
Singapore & Australia Trip
We will be returning to Singapore and Australia later this month and in August. If you are located in any of the following and would like to discuss overseas options, e-mail: anthony.matthews@matthewsandcarter.com to set up a coffee. If you are a British or Irish lawyer who will also be in town for the rugby, don’t hesitate to get in touch
Tuesday 15th – Thursday 17th July: SINGAPORE
Monday 28th & Tuesday 29th July: MELBOURNE
Thursday 31st July & Friday 1st August: PERTH
Monday 4th – Thursday 7th August: SYDNEY