Born in Washington, County Durham, England into a working class family (his father, Fred Ferry, was a farmer who also looked after pit ponies), Ferry attended Washington Grammar-Technical School (now called Washington School) on Spout Lane from 1957 and achieved nine O levels, among his classmates was former Everton football club manager Howard Kendall. Ferry later studied fine art at the University of Newcastle upon Tyne under Richard Hamilton. His contemporaries included Tim Head and Nick de Ville. Ferry became a pottery teacher at Holland Park School in London. Ferry formed the band The Banshees, and later, together with Graham Simpson and John Porter, the band the Gas Board.