UK law firms have experienced healthy growth in the first quarter of the financial year.

Data from Deloitte found that the UK's top 100 law firms' average fee income increased by 15 per cent in the three months to July 31, compared with the same period last year. At the top end of the sector, the 25 leading law firms achieved growth rates of more than 20 per cent, according to the Quarterly Legal Sector Survey (QLSS).

Paul Williamson, senior partner at Deloitte Newcastle, said the QLSS acts as a barometer of industry activity.

"UK lawyers have clearly been very busy well into the summer and if it carries on, this year could be record-breaking," he said.

"UK law firms have continued to benefit from the ongoing levels of corporate activity.

"While the unsettled conditions in the credit markets have caused concern over the level of corporate activity and the outlook for the economy going forward, the legal sector remains optimistic."

The survey found that on average, law firms expect to record annual fee income growth of 13 per cent.