A sharp rise in recruitment of corporate solicitors in London could set in motion a talent drain from regional firms, recruiters told the Gazette this week.

Recruitment consultants said City firms are rushing to hire corporate lawyers after making excessive cutbacks at the height of the recession.

Regional firms have expressed fears that the sudden demand and high salaries on offer will lure their most talented lawyers to London, the recruiters said.

Charles Elderton, director at legal recruiters Chadwick Nott, said that regional firms are battling to prevent their top talent leaving for the capital. ‘The regional firms have concerns about London firms mopping up their best lawyers,’ he said. ‘If they aren’t looking at [introducing] pay increases, there’s a danger some lawyers will leave for London. London went deeper into the recession, but it’s coming out faster.’

Brian Sheehy, consultant at City legal recruiters First Counsel, said that demand for corporate lawyers has increased noticeably from ‘almost zero’ at the end of 2009. ‘Given the significant reduction in headcount at associate level, particularly at the larger firms, it probably only takes a few relatively large instructions for firms to start hiring again,’ he said.

Sheehy said that ‘unexpected activity’ in the structured finance, securitisation and derivatives fields since the start of 2010 has also led to increased demand for banking lawyers. ‘In light of the part played by structured products in the market crash, it is surprising to see a re-emergence of roles requiring [collateralised debt obligation] experience,’ he said. ‘It’s probably a reflection of the growing appetite for risk in the banking sector.’

Martin Luise, director and UK legal practice head at recruiters Hudson, said that firms are increasingly hiring corporate partners and teams, but only if they can bring a substantial client following. ‘Firms are looking specifically for partners who can bring a substantial book of business – worth £250,000 or more – rather than just experienced partners,’ he said.