The personal injury (PI) legal sector in the UK is undergoing significant changes, influenced by regulatory reforms, economic pressures, and evolving client expectations. For both employers and jobseekers in the sector, understanding these key trends is essential for staying competitive and adapting to the new landscape.

Here we explore the major issues and personal injury legal sector trends in the UK, and provide insights for law firms and legal professionals looking to navigate this evolving market successfully.

1. Impact of the Whiplash Reforms

One of the most significant changes to the personal injury landscape in recent years has been the introduction of the Whiplash Reform Programme. Implemented in May 2021 as part of the Civil Liability Act 2018, these reforms were designed to reduce the number of fraudulent and exaggerated claims, which had been driving up motor insurance premiums.

The key changes include:

• A new online portal for low-value road traffic accident claims up to £5,000.
• Fixed tariffs for whiplash injuries lasting up to two years.
• A ban on settling whiplash claims without medical evidence.

For law firms, this has meant a sharp decline in the profitability of low-value claims, with many firms needing to rethink their business models. This shift has led to a consolidation in the market, with smaller firms struggling to compete and larger firms absorbing more of the work.

Jobseekers need to be aware of the impact of these changes when exploring opportunities in personal injury. There is a growing demand for legal professionals who can diversify their expertise into higher-value or more complex cases, such as catastrophic injury or clinical negligence claims. Showing adaptability and a willingness to work across various types of PI claims can significantly enhance your employability in this sector.

2. The Rise of Technology and AI in Case Management

Technology continues to reshape the legal sector, and personal injury is no exception. Law firms are increasingly adopting Artificial Intelligence (AI) and case management software to streamline workflows, reduce costs, and improve efficiency.

For employers, this presents an opportunity to reduce the time spent on routine tasks, such as document review and claim submissions, allowing fee-earners to focus on more complex work. However, it also raises questions about the future role of junior staff and support roles, many of whom traditionally perform these tasks.

For jobseekers, digital literacy and proficiency in legal tech are becoming essential skills. Candidates who can demonstrate experience with leading case management software or familiarity with AI tools used in legal practices will stand out in a competitive job market.

Moreover, while tech is streamlining some aspects of PI work, human skills such as client communication, negotiation, and empathy remain invaluable – especially in dealing with individuals going through traumatic experiences.

3. Post-Pandemic Claims Backlog

The COVID-19 pandemic had a profound impact on the court system, leading to significant delays in hearings and a growing backlog of personal injury claims. Although courts are now operating more effectively with the integration of virtual hearings, the delays are still being felt across the sector.

For law firms, this backlog means an extended time between case intake and settlement, affecting cash flow and resources. Many firms have had to adjust by offering flexible payment terms or contingency fee arrangements to manage their finances.

Jobseekers should recognise that this backlog also creates opportunities. Firms are seeking professionals who can help manage large caseloads efficiently and work under pressure. Lawyers with strong organisational skills and the ability to push claims forward quickly will be highly valued.

4. The Cost-of-Living Crisis and Changing Client Behaviour

The rising cost of living in the UK is impacting both clients and law firms. With household budgets stretched, many potential claimants are less willing to pursue personal injury claims due to concerns about legal costs and uncertainty about the outcome. Even though most personal injury cases are handled on a no-win, no-fee basis, potential clients may be more cautious about engaging legal services.

For law firms, this shift in client behaviour requires a focus on client engagement, transparent communication about costs, and efficient case resolution. Firms that can reassure clients about the financial aspects of pursuing a claim, while managing expectations, will likely retain more business during this difficult time.

For jobseekers, the ability to communicate effectively with clients and address their financial concerns will be a valuable asset. Law firms will increasingly look for professionals who can handle client objections and build trust through empathetic and clear communication.

5. Shifts in the Clinical Negligence Sector

Alongside whiplash claims, clinical negligence is a significant area within personal injury law. However, this sector is facing its own challenges. The NHS is currently grappling with a substantial rise in claims, placing enormous pressure on resources and leading to calls for reform in how clinical negligence claims are handled. The government has also suggested that it might introduce caps on legal fees for lower-value clinical negligence cases, similar to reforms in the general PI sector.

For employers, this uncertainty requires careful planning and perhaps a greater focus on building expertise in higher-value clinical negligence claims. Law firms may also need to rethink their fee structures if caps are introduced, which could reduce revenue from smaller claims.

For jobseekers, developing experience in clinical negligence can be a lucrative career path, but it’s vital to stay updated on regulatory changes. Candidates who can demonstrate expertise in this niche area – particularly in high-value claims involving complex medical evidence – will be in high demand.

6. Regulatory Changes and Fixed Costs in Personal Injury Cases

In addition to the whiplash reforms, as of October 1, 2023, fixed recoverable costs (FRCs) in the UK were extended to cover a broader range of personal injury and other civil claims, specifically those valued between £25,000 and £100,000. Previously, FRCs mainly applied to lower-value cases in the fast track, capped at £25,000.

The recent expansion creates an “intermediate track” for more straightforward cases under £100,000, aiming to provide greater cost predictability in these cases by setting a cap on the legal expenses that can be recovered from the losing party​. This reform aligns with the government’s broader efforts to improve access to justice while controlling legal costs across civil litigation, ensuring that the costs of bringing or defending a case remain proportionate to its value.

For law firms, the expansion of fixed recoverable costs (FRCs) will likely continue to pressure law firms, especially those focused on smaller claims, as capped recoverable costs reduce the profitability of cases valued up to £100,000. Smaller firms might find it increasingly difficult to remain competitive, potentially accelerating industry consolidation. Firms may start prioritizing higher-value or more complex cases that can absorb the limited cost recovery under FRC, leading to a strategic shift away from lower-value claims. This change will require many firms to evaluate their case portfolios and potentially adjust fee structures to maintain financial stability in this new cost landscape.

For jobseekers, these reforms create a mixed landscape of both challenges and new opportunities. With fewer roles centered around low-value claims, jobseekers may need to pivot their skills to remain relevant. As firms increasingly focus on higher-value cases, candidates with experience in handling complex litigation—particularly those with strong case management skills—will stand out. Flexibility and a readiness to engage with diverse, high-value personal injury claims will be advantageous for candidates aiming to secure a foothold in a more competitive market shaped by these reforms.

7. Increased Focus on Mental Health and Wellbeing

The personal injury sector is inherently stressful, particularly given the nature of the work and the emotional toll it can take on both legal professionals and clients. In recent years, there has been a growing focus on mental health and wellbeing within law firms, with many employers recognising the importance of supporting their staff.

For employers, offering mental health support, flexible working arrangements, and a positive work-life balance is no longer a “nice-to-have” but a necessity. Firms that can demonstrate a commitment to employee wellbeing will not only attract talent but also retain it, particularly in a sector where burnout can be prevalent.

For jobseekers, it’s important to consider how potential employers prioritise wellbeing. During the interview process, don’t hesitate to ask about the firm’s approach to work-life balance, mental health resources, and how they support employees in managing the pressures of personal injury work.

Navigating this changing landscape

The UK personal injury sector is at a turning point, with regulatory changes, economic pressures, and evolving client expectations reshaping the market. For employers, adapting to these changes by embracing technology, refining business models, and supporting staff wellbeing will be crucial to long-term success. For jobseekers, staying informed about these trends and developing a broad skill set will help you stand out in an increasingly competitive market.

Whether you are an employer or a legal professional looking to grow in the personal injury sector, Clayton Legal can help you find the right talent or the right opportunity. Contact us today to learn more about how we can assist in navigating these industry changes.

About Clayton Legal

Clayton Legal has been partnering with law firms across the country since 1999 and during that time has built up an enviable reputation for trust and reliability. We have made over 5,000 placements from partners to legal executives, solicitors to paralegals, and legal IT personnel to practice managers.

If you are looking for your next career move, we can help.

2023 was a busy year for civil justice reforms and it’s more than likely that we’ll continue to see changes this year too as the Ministry of Justice (MoJ) and Civil Justice Council (CJC) continue to update and review key legislation and guidelines.

Taken together, the upcoming and proposed civil justice reforms are designed to make it easier and simpler to resolve civil and commercial litigation and help clear some of the ongoing backlog of small claims and injury cases in the court system.

That’s not to say that the reforms have been uncontroversial.

Let’s explore the timeline of civil justice reforms and potential changes you need to be aware of in 2024:

Guideline Hourly Rates Rise

From January 1^st the Guideline Hourly Rates (GHR) for fee earners have increased in line with inflation according to the Services Producer Price Index. The new hourly rates have risen by around 6.5% and will rise annually in line with the SPI. You can find the new rates here.

Review of the Personal Injury Discount Rate (PIDR)

Following a second call for evidence which ended on 9^th April, another formal review of the PIDR is expected to take place in July 2024 with any changes being announced before the end of January 2025. Potential changes could result in disruption and increased costs.

Fixed Recoverable Costs (FRC) Uprated for Inflation

Previously only used for low-value cases, FRC now apply to most civil litigation claims in England and Wales valued up to £100,000. What’s more, the government has finally confirmed that FRC for low-value clinical negligence claims (valued between £1,001 to £25,000) will come into force in October 2024, six months later than planned. However the changes are not without opposition with The Society of Clinical Injury Lawyers arguing that the FRC proposals are ‘fundamentally flawed’, as they misunderstand the nature of compensation and do not prioritise learning and patient safety.

Further Changes to Pre-Action Protocols

Discussion continues around the issue of digitising pre-action processes. The first part of the Civil Justice Council’s review of pre-action protocols was published in August 2023. The report focused on the benefits of digitisation and recommended several proposals to the MOJ. While there is no timeframe for the publication of the second part of the review it is anticipated that it will focus on reform and creation of specific protocols.

Mediation and Alternative Resolution to become Compulsory

The government has been focused on integrating mediation and other forms of ‘negotiation dispute resolution’ (NDR) into a wide range of legal practice areas for some time. We’ve seen mediation processes begin to be implemented in family law and in small claims cases up to the value of £10,000 over the past year and we can expect to see the same in wider civil and commercial litigation.

Potential Pilots on Cost-Budgeting

Finally, the CJC has recommended that a pilot be undertaken to test different approached to cost budgeting in the next year or so.

How Civil Justice Reforms Could Affect Recruitment

So, what do these current and future civil justice reforms mean for law firms and how will they affect your ongoing recruitment and talent acquisition planning?

In the short term the ongoing backlog of civil court cases in England & Wales combined with the changes to FRC’s and the rise in hourly rates could put off clients with smaller claims. This could mean less work for smaller firms, putting the brakes on hiring. However, one potential upside is an increase in legal talent on the market.

The rise in GHR could also improve early career recruitment, making it easier to snap up young legal talent, if you can create an employer brand that appeals.

In the medium to longer term, the skillsets sought by law firms are expected to evolve. The push towards digitisation, an increase in tech-based roles, and a greater emphasis on mediation will necessitate attracting and retaining candidates with digital literacy, mediation, and Negotiation Dispute Resolution (NDR) experience alongside their legal expertise.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

It’s been nearly 6 months since the Transparency Pilot, a scheme which allows for greater access to the family court system by the media, was rolled out to 19 of the 43 family court centres in England and Wales. The scheme is designed to encourage greater visibility of the family court system by allowing journalists, legal bloggers and advocated access to proceedings and giving permission for outlets to publish what happens there. While the changes to family court reporting have not been uncontroversial, the scheme itself has been a success.

Alongside the increased use of alternative dispute resolution in UK law, the changes to family court reporting rules mean we could be seeing the largest shift in legal norms in generations. The resulting increase in visibility and scrutiny will have an enormous impact on family law firms and their goals when it comes to talent acquisition.

The biggest hurdle to the success of the scheme has been centred around the question of how to balance expectations of privacy, particularly for children, with a growing need to build a culture of transparency in some of our biggest public institutions. Some senior judges have been less than supportive of the scheme, citing concerns over a lack of public interest and a fear of lurid tabloid journalism.

However the clear guidance on family court reporting provided by the President of the Family Division, Sir Andrew McFarlane aims to reassure judges, lawyers and journalists that media access will work towards the overriding objective of the scheme; transparency. In each of the 16 participating courts judges can issue Transparency Orders with set conditions around what can and cannot be reported and all proceedings remain subject to strict anonymity rules.

What This Means For Family Law Recruitment

The extension of the family court reporting pilot has several potential ramifications for law firms looking to attract and retain legal talent. Firms specialising in family law or those looking to hire family lawyers should be aware of the need for:

1. Adapting to new regulations

Law firms need to anticipate and adapt to the potential shifts in reporting regulations and media access to family court. These shifts don’t just signal changes in regulation but changes in society as well. Greater awareness of domestic violence, coercive control, and financial control have led to a desire amongst the public for wider visibility into family court proceedings.

To ensure compliance and protect their clients’ interests, firms should regularly review and update their internal policies and procedures regarding media interaction and public disclosure of case information and ensure that new hires as well as established partners are aware of and adhere to these policies. Recruitment and talent attraction teams should look for candidates with a demonstrated ability to navigate complex regulatory landscapes and quickly adapt to evolving legal frameworks.

2. Ongoing training and development programs for legal professionals

If the family court reporting pilot scheme is rolled out to the rest of the country it will be crucial for legal teams to stay updated on the latest media-related legal practices to best support and represent their clients effectively.

Ongoing training ensures that teams understand the nuances of reporting restrictions, confidentiality laws, and ethical considerations when dealing with media inquiries in family law cases. And that they have the knowledge and skills necessary to handle legal issues and conflicts brought about by media engagement.

3. Legal professionals with strong communication and public relations skills

Alongside legal expertise, family lawyers with exceptional soft skills are going to be in high demand. The ability to communicate effectively with the media, clients, and other stakeholders and a background in public relations will help in navigating sensitive family law cases and managing external perceptions and the wider reputation of the firm.

Those looking to attract and retain top family law talent must prioritise candidates who are proficient in creating communication strategies, crisis management, and maintaining client confidentiality amidst media scrutiny. Former criminal barristers could be a potential source of legal talent with the media skills necessary.

In Conclusion

The Transparency Pilot represents a significant shift in the family court system, promoting greater openness and accountability. By allowing media access and the publication of court proceedings, the initiative seeks to build a culture of transparency within one of our most critical public institutions. Despite concerns over privacy and the potential for sensationalism, clear guidelines and strict anonymity rules aim to balance these issues effectively.

For family law firms, the pilot scheme introduces new challenges and opportunities in talent acquisition and retention, and it’s clear that firms must adapt to evolving regulations, ensure continuous professional development, and seek legal professionals with strong communication skills. These changes signal a broader transformation in legal norms, underscoring the importance of transparency and public awareness in family law.

As the pilot progresses, it will be essential for law firms to stay agile, informed, and proactive in navigating this new landscape to best serve their clients and uphold the integrity of the family justice system – and of course, to ensure their own team keep up with the changes ahead.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

Mediation and other alternative dispute resolution procedures (ADR) are going to become ever more important within the UK civil justice system going forward. Following government consultations and the success of the use of ‘negotiation dispute resolution’ (NDR) in family, housing and consumer cases, we can expect to see alternative dispute resolution procedures integrated in wider civil and commercial litigation.

This is primarily due to the ongoing backlog of cases being experiences across the UK legal system. It is estimated that the reforms already committed to will free up nearly 5,000 sitting days per year, which will reduce waiting times for more complex cases. But the adoption of ADR procedures is also designed to make mediation and other types of dispute resolution more accessible and to simplify the processes for civil cases, making them quicker and easier to resolve.

Which Cases Will Be Affected

As previously mentioned, in civil cases up to the value of £10,000 alternative dispute resolution procedures will become compulsory with 180,000 parties being referred automatically to free telephone mediation sessions during the first rollout of reform. However, personal injury and unspecified money claims will not initially be included.

These reforms go further than what was recommended by the Civil Justice Council which supported using alternative dispute resolution procedures only for cases up to the value of £500 and will require expanding the Small Claims Mediation Service (SCMC).

The Law Society has expressed reservations about the compulsory nature of the reforms, stating that “While mediation and other forms of alternative dispute resolution (ADR) should be used wherever appropriate, we do not support the compulsory use of mediation where it may be detrimental to either party, or prevent access to justice.”

Types of ADR

There are several methods of ADR available for resolving cases outside of traditional court proceedings. For civil cases in the UK, the preferred method will be mediation, where a neutral third party helps disputing parties negotiate a mutually acceptable resolution. But there are other methods litigants may want to consider if mediation may be detrimental.

Arbitration involves a neutral arbitrator or panel making a binding decision based on evidence presented by both sides. Another option is adjudication, where an independent adjudicator makes a temporary decision that parties must abide by until a final resolution is reached. Finally, conciliation involves a third-party facilitating communication between parties to reach a settlement.

Alternative Dispute Resolution Skills You Should Be Hiring For

With mediation becoming compulsory for civil cases up to the value of £10,000 in the UK, legal teams are increasingly seeking individuals with specific ADR skills to navigate these changes effectively. Here are key skills and attributes that you should prioritise when hiring new talent:

• Mediation Training and Certification
  Look for candidates who have completed formal training and certification in mediation or those who can demonstrate a foundational understanding of the mediation process, including communication techniques, negotiation strategies, and conflict resolution principles.
• Strong Communication Skills
  Effective communication is key in mediation, as it encourages productive dialogue and helps parties articulate their interests and concerns. Seek candidates with exceptional verbal and written communication skills, including active listening, empathy, and the ability to convey complex legal concepts in clear, accessible language.
• Negotiation Expertise
  Look for candidates with experience in negotiation roles and proven negotiation skills, including the ability to identify common ground, propose creative solutions, and manage conflicting interests diplomatically.
• Conflict Resolution
  Successful mediators can navigate emotionally charged situations and facilitate constructive dialogue between disputing parties. Look for a track record of resolving conflicts in diverse contexts and the ability to demonstrate patience, impartiality, and resilience in challenging circumstances.
• Cultural Sensitivity
  Mediation often involves parties from diverse backgrounds and cultures, requiring mediators to navigate cultural differences sensitively. Seek candidates with cultural competence, awareness of diversity issues, and the ability to foster an inclusive environment conducive to productive dialogue and mutual understanding.

By prioritising candidates with these ADR skills, you’ll be better placed to adapt to the mandatory mediation requirement in civil cases and any further dispute resolution reforms.

Clayton Legal has over 25 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

Once considered a niche practice area for British corporate law firms, private client services are increasingly central to many firm’s growth plans thanks to their resilience in a turbulent market – the sector grew 17% in 2021. Recent dips in activity could be reversed if predicted changes to income tax thresholds and adjustments to the non-domicile regime are announced in this year’s pre-election Spring Budget, with more taxpayers finding themselves in need of advice.

What’s Behind the Private Client Services Boom

This shift in popularity can be attributed to several key factors that are reshaping the landscape around financial law. A growing interest in personal wealth management has caused firms to broaden their service offering. Offering financial and tax advice to high-net worth individuals alongside their corporate services has proven to be popular, prompting them to expand their teams.

Technology has also increased the accessibility of financial planning and wealth management information and resources through the likes of digital trading platforms, investment apps, and online will and probate services. A wider range of individuals seeking advice in a challenging economic environment has meant an expansion of the client base for private client services. Greater accessibility has its downsides as it creates more opportunities for financial abuse against vulnerable parties, however this can lead to more work for private client legal teams.

The rise of digital assets and the complexities surrounding inheritance and estate planning in the digital age have further heightened the demand for specialised legal expertise. Even though the legalities and tax implications around digital currency remain vague many individuals are keen to seek advice in this area adding an additional layer of complexity to the field.

Private client services are also an increasingly popular choice for young law graduates or those looking to expand their skillset and shift into a new practice area.

Why Private Client Services Appeals to Early Career Talent

For early career solicitors, private client services present a unique and attractive opportunity to engage with a diverse range of clients and navigate the challenges of modern wealth management. For those looking for an interesting, potentially lucrative, and dynamic legal career it makes an attractive choice.

Working in private client law allows emerging talent to build strong relationships with their clients and help individuals personally. It also intersects well with other areas of legal practice giving young graduates the chance to work closely with colleagues in family law, corporate and civil litigation, and legal IT amongst others.

Attracting and Retaining the Next Generation of Private Client Talent

If you are considering expanding your private client services team, you need to attract and retain the very best talent. You can ensure that you appeal to both early and mid-career private client professionals by:

Providing Training & Professional Development

Look at tailoring the training and professional development programs you offer towards the skills and expertise needed for private client services. This could include workshops on the latest developments in wealth management, estate planning and digital assets. If you have existing senior professionals with private client experience, you might consider offering mentorships.

Supporting Work-Life Balance

Implement policies and procedures that recognise and support the importance of work-life balance. Offering flexible work arrangements and promoting a culture that values personal well-being can be instrumental in attracting and retaining talented individuals in a competitive legal landscape.

Investing in Technology

Invest in cutting-edge legal technologies to streamline workflows and enhance efficiency in private client services. The integration of digital tools can not only attract tech-savvy lawyers but also contribute to a more dynamic and engaging work environment.

Creating a Culture of Diversity and Inclusion

Fostering a culture of diversity and inclusion within your firm will help you attract a broader pool of talent and contribute to a vibrant and collaborative team. Those different perspectives will then help you in addressing the unique needs of a diverse clientele.

Offering Competitive Compensation and Benefits

Acknowledge the specialised expertise required in private client services by offering competitive compensation packages and benefits. This includes not only financial incentives but also healthcare, retirement plans, and other perks.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

From April 2024, the government is set to introduce limits on the amount law firms can receive from clinical negligence claims. This cap on fixed recoverable legal costs is intended to stem the almost £2.6 billion the NHS spends on clinical negligence by reducing legal costs for cases that settle under £25,000. It is the government’s stance that a cap on clinical negligence costs will not only save the beleaguered health service an estimated £500 million over the next decade but that it will be fairer for claimants – whose legal costs are often more than double their settlements – and encourage those with smaller claims to seek justice.

However, legal firms and clinical negligence lawyers argue that the sweeping changes have been brought in too quickly and with little consultation, and that the Department of Health and Social Care has set the cap on clinical negligence costs too low, undervaluing the expertise it takes to bring these claims to court. Something the government seems to agree on, as they are set to increase the limit before the new regulations are enforced.

Representatives for patients have also protested, saying that vulnerable claimants and their families could be excluded from bringing claims as firms refuse to take on work that require more time, expertise, and sensitivity than the value of the claim reflects.

How This Will Affect the Legal Market

On the face of things, the new limits on clinical negligence fixed costs shouldn’t have too much of an impact, especially for large firms since they are limited to small claims with a value of under £25,000. However, in the longer term the cap on costs could cause upheaval for smaller firms and clinical negligence departments. Unless the government can get the limits on clinical negligence costs right, we could see:

• An exit of smaller more specialised firms from the market, funnelling customers to larger businesses who may not have the time or inclination to take on small claims.
• Greater competition amongst firms for claims with the potential for larger payouts.
• A rise in class-action claims as firms group claimants together to maximise resources and returns.
• The potential for larger numbers of specialist lawyers to enter the job market, which could prove beneficial for employers who are looking to access key skills but will lead to greater competition among candidates for fewer roles.
• The profession will experience a loss of critical knowledge and expertise as departments contract and firms exit the market.

What It Means For You

With less than two months before the limits on clinical negligence costs come into effect, are you ready for the changes? There will be more competition for claims, and smaller gains from cases. In terms of your wider business growth, now is the time for careful consideration of your strategy.

1. Think ahead with your workforce planning

Effective workforce planning will help you navigate business changes. Succession planning helps you understand who may be leaving and allows for strategic skill replacement, whether through internal transfers or external hires. In times of downsizing, retaining key skills through cross-departmental moves prevents talent loss. Adjusting recruitment processes to focus on quality over quantity is essential, safeguarding against low-quality hires and ensuring resilient teams.

2. Consider training and professional development

While the influx of specialist legal talent onto the job market could prove tempting especially during a skills shortage, it can be a costly strategy. Instead, investing in developing existing teams is often more sustainable. Focus on enhancing soft skills, digital capabilities, and leadership within your current teams. This approach not only maximizes resources but ensures a cohesive team with a deep understanding of your company’s culture and goals.

3. Double down on retention

With smaller teams managing increased workloads, maintaining a strong, committed workforce is crucial. A focus on employee wellbeing and creating a positive work environment prevents burnout and preserves morale, reducing the risk of team members seeking alternative career paths. As competition for top talent intensifies, retention becomes a safeguard against poaching and ensures continuity in your teams, important for both your business and your clients.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

It’s been nearly two years since no-fault divorce legislation came into effect in England and Wales. Despite the legislation aiming to streamline proceedings for divorcing couples, according to the Law Society the average time for divorce increased to around 38 weeks post-reform, with a significant backlog of custody and family law cases tying up the courts. So, what further family law reforms are on the table, and how will any future changes impact firms working in Family and Private law?

Upcoming Government Family Law Reforms

Following on from no-fault divorce legislation, the government’s primary concern in family law reforms has continued to be with creating processes that reduce conflict in cases – such as improving access to early legal advice, providing vouchers for mediation, co-parenting classes and improving safeguards for victims of domestic violence – with the aim of supporting the wellbeing of children in separating families.

Following the outcome of the Private Family Law Early Resolution Consultation published in January a number of pilot schemes in England and Wales are being extended in advance of a national rollout with the hope that many cases will be resolved before reaching court. There is also an extension of an ongoing pilot scheme allowing journalists to report on family court proceedings designed to increase transparency in the family court system.

What Isn’t Included in the Plans?

Welcome though these changes are, there is still unfinished business when it comes to family law reforms, particularly legislation surrounding financial settlements in divorce cases and the legality of pre and post-nuptial agreements. Not to mention the legal protections afforded for cohabiting couples in the event of relationship breakdown.

Because there is little transparency around these issues, many clients approach legal separation with trepidation. The Law Commission is currently reviewing the laws around financial settlements however many feel that this process is too slow, and that any proposed changes will not go far enough. There have been calls from both Labour and Conservative MPs for the government to speed up reforms around financial settlements, albeit from different perspectives.

Baroness Deech has repeatedly pressed for pre and post-nuptial agreements to be made legal stating that ‘enacting pre-nuptial agreements into law would save cost, make mediation easier and significantly free up the courts.’

On the other side, Shadow Attorney General and MP, Emily Thornberry announced at last year’s Labour Party Conference that her party was committed to cohabitation reform to strengthen the protections available to those living together, particularly those couples where one partner earns significantly more than the other.

The Consequences of Further Family Law Reform for Firms

With the Law Commission currently reviewing the current legislation around financial settlements and the distinct possibility of a Labour government in the near future, it’s possible that we’re going to see continued family law reforms. But what could this mean for law firms, your Private and Family legal teams, and your recruitment strategy?

Putting tougher limits around the splitting of marital assets and reducing the extent to which outcomes are dependent on the discretion of judges could lead to a reduction in the number of large international divorce cases we have seen in the English courts. This may free up the time and resources of the family court system as could the stronger emphasis on mediation, as fewer cases reach court. Those that do make it to court will be easier to litigate and far less drawn out, resulting in lower legal costs for clients but greater competition for high-value cases from legal firms.

For Family and Private Law firms we could see:

• A greater emphasis on providing pre-divorce legal advice and mediation services.
• Smaller teams but with greater skill specialisation (eg. financial expertise, mediation techniques, child welfare etc.)
• A need to widen the soft and non-legal skills available in your team to include media relations, conflict resolution, communication, and empathy.
• Increased provision of training and development around domestic violence, child safeguarding and financial abuse.
• A need to widen the soft and non-legal skills available in your team to include media relations, conflict resolution, communication, and empathy.
• Increased provision of training and development around domestic violence, child safeguarding and financial abuse.
• A need to tap into wider perspectives through Diversity and Inclusion initiatives.

All of which might need you to rethink your talent attraction and retention strategies and target key skills to better support your long-term growth.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

The paths of residential and commercial property transactions in the UK are at a moment of divergence. While residential transactions are declining, commercial property transactions seem stable, even on the rise. Yet property lawyers are reporting shrinking caseloads, with some firms handling 25% fewer cases in 2023. Improving the conveyancing process, particularly through the implementation of digital conveyancing could create a better, faster conveyancing market that encourages buyers and sellers to take the plunge.

The Current State of Real Estate in the UK

Figures from HMRC show that December 2023 saw the fourth consecutive month-on-month drop in the number of residential transactions, marking a 20% decline from December the previous year. Yet at the same time, commercial property transactions are increasing, albeit slowly.

Many commentators are predicting a smoother, less fractious property market in 2024 that won’t be marked by the mini boom and bust cycles we’ve seen since 2020. However, what’s stopping the market from taking off is the continued sluggishness of property transactions. The average time for conveyancing on a residential property is around 22 weeks and for commercial property can be slower  – a long way from the ideal transaction time of 8-12 weeks.

These long conveyancing times are a major contributor to the national fall through rate on property purchases of 34%.

Is Digital Conveyancing the Solution?

Property transactions, far more than property prices, are a great indicator of the health of the market. Making property transactions faster and easier has the potential to encourage both sellers and buyers and creating a more stable property market in the long-term. So, how can we achieve better and faster conveyancing and a system that works for both buyers and sellers?

One oft cited solution is digital conveyancing. Digital conveyancing involves implementing electronic transactions for the transfer of legal documents and funds and making land search details such as tenure, title, and lease length accessible instantly. Digitalisation would:

• Make the current conveyancing system more streamlined and transparent
• Go a long way to achieving faster conveyancing times
• Reduce the likelihood of error and the need for extensive checks and land searches
• Make the system more accessible and make long-distance transactions easier

Countries such as Norway have achieved great success with digital conveyancing systems, in some cases reducing transaction times to a matter of days. However, making such a system possible in England could prove more difficult. Bringing conveyancing solicitors, the land registry and real estate agents into alignment would require robust data security measures, compliance regulation and technology implementation. It is also likely to be costly.

It seems unlikely that the government will agree to the high-level conveyancing rule changes that would make wholesale digitalisation of the system possible. Meaning that without industry-wide desire for reform the technology is likely to be implemented patchily, with some sectors such as commercial real estate more reluctant to embrace change.

Another possible solution is providing buyers with more upfront information regarding property, in the form of a return to home information packs (HIPs), Scotland’s home reports or even Buying and Selling Property Information (BASPI) questionnaires. Transaction times when HIPs were introduced were around 12 weeks and Scotland has seen a 60% reduction in fall throughs since adopting home reports. And, consumers are happy to pay for this information, with 65% willing to pay £300 for information that would speed up their transaction times.

What Should You Be Doing to Prepare for Digital Conveyancing?

As we’ve heard recently, a stable market means many conveyancing firms are looking to drive recruitment. But how can you make sure your latest recruitment drive considers the future of conveyancing?

1. Attracting the right talent:
   Your hiring strategy should be focused on building and maintaining a talent pipeline that sustains your business long term. Focus on developing a strong, online employer brand that appeals to candidates, improving the candidate experience to make applying for roles smooth and seamless, and creating job descriptions that reflect the attributes and skills you need.
2. Hiring for digital skills:
   Speaking of skills, when evaluating candidates be sure to consider their digital skills and abilities alongside their other competencies. Digital literacy will be increasingly important for the legal profession with or without the digitalisation of conveyancing. Skills-based hiring can also be used to pinpoint other key competencies like communication which are key in creating better and faster conveyancing.
3. Retaining critical knowledge:
   Embracing the future of conveyancing will be impossible if business critical knowledge is lost. Improving employee retention not only keeps that knowledge in-house but allows you to pass that on to new employees though mentorship and professional development schemes.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.