The UK software engineering and development market can best be described as competitive. Towards the end of 2025, there has been an increase in job opportunities in some areas; however, the type of skills now being sought is not being matched by an increase in skilled candidates, and skills shortages continue to limit hiring.
The current market has become increasingly senior-driven, with fewer junior roles available and employers expecting even entry-level candidates to have all the skills to hit the ground running.
With more candidates available as a result of well-documented layoffs and reduced investment in early-career hiring, employers now have greater choice, allowing them to be more selective about the skills they require. For developers, this has created additional pressure to demonstrate not only depth in their core expertise, but also a broader, more adaptable skill set.
This article looks at how that shift happened, and what it means for the year ahead.
A market that’s flipped
A few years ago, software engineering was very much a candidate-driven market. Skills requirements were lighter, and developers could easily move roles. Now, the balance has shifted. Employers are looking for candidates with stronger, broader technical expertise and are less willing to compromise. While cloud knowledge remains a must-have, businesses are also increasingly seeking full-stack engineers who can handle both back-end and front-end work, reflecting a need for versatility across modern tech stacks.
The AI effect on hiring
While demand for AI engineering roles is rising, they still make up only a small part of the wider tech market. Most organisations continue to prioritise traditional software engineers who can use AI tools to enhance coding efficiency, rather than hiring dedicated specialists to build AI models.
However, AI-assisted development is changing how teams are structured. Senior developers who can work effectively with AI tools can often deliver the same output that previously required additional junior support.
This has led to fewer opportunities at the graduate and junior levels, creating concerns about the future talent pipeline. Junior developers are often less confident in core coding fundamentals, relying on AI tools instead of developing critical thinking and foundational skills.
Businesses now face a twofold challenge, with fewer juniors entering the market, and those who do require more training to meet core standards.
What’s driving demand
Much of today’s demand for software engineering is being driven by AI-focused start-ups, which rely heavily on traditional software engineers to build the platforms, APIs, backend services, user interfaces, and cloud infrastructure that make their products function at scale. These engineers turn AI concepts into real, customer-ready applications and ensure products can be reliably scaled, all of which depend on strong, foundational software engineering skills.
As well as AI start-ups, many established industries such as finance, banking, retail, gambling and gaming continue to recruit steadily, driven by ongoing investment in core digital platforms. Their focus is on modernising legacy systems, maintaining secure and compliant technology environments, and supporting high-volume, customer-facing applications that are central to day-to-day operations. The scale and criticality of this work often translate into higher salaries for software engineers.
What employers value most
Technical ability remains the top priority when it comes to hiring software developers. While soft skills become more important at the leadership level, hiring decisions for most developers are still driven by technical capability. Employers are looking for people who are hands-on and confident with modern tech stacks.
The most in-demand languages and frameworks include:
- .NET (particularly .NET Core)
- Java
- Python (especially within financial services)
- TypeScript and React for front-end development
- Swift and Kotlin for native mobile development
Cloud expertise is another must-have for software developers. Today, most businesses expect candidates to have hands-on experience with Azure, with AWS also in demand depending on the environment.
Hiring a software professional who already knows the ins and outs of cloud platforms means teams don’t have to spend time or resources on training, allowing new hires to contribute from day one, a crucial advantage in a market where budgets are tight, and every developer needs to hit the ground running
Salary ranges and seniority
The biggest concentration of demand is at the senior level. While job titles vary, sometimes wildly, the hierarchy of junior, mid-level, and senior remains consistent across the industry.
Typical UK salary ranges are:
- Junior: £35,000–£40,000
- Mid-level: £40,000–£60,000
- Senior: £60,000–£80,000+
Salaries in London tend to be around 20% higher for software developers, and roles in industries such as gambling, gaming, and finance typically pay more than average.
Setting up for success
For employers looking to scale their software teams in the year ahead, preparation makes all the difference. Make sure your current team is settled, and your hiring process is clear before going to market. Long or unclear interview stages can put off top candidates who will likely be in demand elsewhere.
It’s also worth speaking to a specialist recruiter who understands the market and can help shape a hiring process and advise on current talent pool availability and candidate expectations. Taking time to get that right upfront saves a lot of time and helps deliver the right talent quickly.
How can Harvey Nash support?
At Harvey Nash, we focus on delivering quality over quantity. Each of our clients works with a specialist who knows their market inside out, ensuring every shortlisted candidate has been properly vetted and matched. We use advanced tools and shared national networks to connect clients with the best software and engineering talent across the UK.
We’re also transparent in how we work, both with candidates and clients, helping build lasting trust and long-term partnerships.
If you’re looking to scale your software engineering or development team in 2026, our specialist consultants can help you shape an effective hiring strategy, attract the right candidates, and build a team that lasts.
And if you’re a software engineer or developer exploring your next move, we partner with some of the UK’s most innovative organisations across multiple industries.
Browse our latest software engineering and development roles.
Morgan Fox - Software Engineering & Development Specialist
