Strategic sector insights for the legal profession in 2026: mid-sized firms

Mid-sized law firms in the UK are rethinking their growth strategies against a backdrop of rising costs and a changing regulatory environment. We’ve collaborated with MHA on research that offers a glimpse into the strategic outlook for mid-sized firms in 2026.

19 Jan 2026

3 minutes read

MHA logo We surveyed senior leaders from firms with eight to 50 partners across England and Wales to understand how they’re navigating challenges around:

people
technology
property
environmental, social and governance (ESG) issues
finance

This research provides the outlook direct from partners in regional and national law firms. It is designed to help decision-makers anticipate challenges, spot opportunities and make informed choices around people, technology and finance in 2026.

As technology, external investment and culture change reshape the sector, this report helps you benchmark your practice and uncover strategic opportunities for growth over the next 12 months.

Strategic priorities

Growth remains a key focus for leaders and decision-makers in mid-sized law firms, with nearly half (46%) identifying increased market share as their most significant opportunity.

An emerging trend is the push towards artificial intelligence (AI), with 65% of mid-sized firms now using it to drive productivity and growth.

Alongside technological adoption, investment trends are also evolving with mergers, acquisitions and interest in private equity investment on the rise.

People

Mid-sized firms are now looking at new strategies to retain and attract talent.

Partnership is losing its appeal, with 43% of respondents reporting partnership to be less desirable, and only 14% reporting greater interest in it amongst senior staff.

Firms are grappling with a changing workforce. 35% of respondents said that hiring was more challenging than in previous years.

Staff turnover was below 5% for most firms, but over one-third reported turnover between 6% and 10%.

Where retention was a challenge, 67% identify “better pay elsewhere” as the top reason for leaving a firm.

To see the infographic about this topic, please refer to the live page.

Expectations around working patterns have evolved, with hybrid working no longer viewed as a perk, but an expectation.

Financial performance

Mid-sized law firms are experiencing steady revenue growth. 62% of firms surveyed reported an increase greater than 5%, while 37% reported an increase greater than 10%.

81% of firms surveyed reported a net profit of up to £6 million. However, costs are rising.

To see the infographic about this topic, please refer to the live page.

The most common charge-out rates for partners lie between £301 to £400 per hour.

Nearly half (49%) of respondents are still not using value-based billing models, and 33% have not considered pricing model changes despite AI efficiencies.

To see the infographic about this topic, please refer to the live page.

Technology and AI

Mid-sized firms are embracing AI and technology, with 94% of leaders believing it will boost productivity.

This perception is backed by a rise in technology investment, with 65% of firms surveyed planning major IT upgrades – up from 48% in 2025.

As firms deploy AI across their operations, using it for contract analysis, legal research and predictive modelling, cyber security is also emerging as a top concern.

Perceptions on how AI will impact talent are mixed.

Aspect	Positively impact	Negatively impact	Neither/unsure
Key principles and institutions	33%	14%	52%
Talent development	38%	43%	19%
Productivity	94%	2%	5%
Scale of the workforce	25%	44%	30%
Professions’ role in communities	17%	24%	59%

Environmental, social and governance (ESG)

ESG considerations remain relevant for mid-sized law firms but are less of a priority than in previous years.

However, an ESG policy is seen as a given, leading to improved financial performance with environmental initiatives having the capacity to reduce operating costs.

62% of survey respondents believe an ESG policy can help meet corporate social responsibility objectives.

Other far-reaching benefits cited by mid-sized firms include: