His travels had so far established his health that he was now able to turn to business. His own desire was to return to Cambridge, but his father was old, and the business concerns of the firm were more than his elder brother could manage by himself. The Ferrar family was closely connected with the business of the Virginia Company, to which Nicholas now devoted himself. His reputation was so great as a man of science that in 1619 he was offered the post of reader of geometry at Gresham College, which he declined. The affairs of the Virginia Company gave him sufficient employment, as its patent was threatened by the king, and frequent attempts were made by the council to override it. Ferrar was the chief adviser of the Earl of Southampton and Sir Edwin Sandys in withstanding these attempts; but his efforts were in vain, and the company was deprived of its patent in 1623.
Ferrar was now a well-known man in political circles. He was elected to parliament in 1624, and took part in the impeachment of the lord treasurer, the Earl of Middlesex, who had been foremost in the dissolution of the Virginia Company. But this was the last act of Ferrar's public life. He had seen enough of the world and its ways. He shrank from the struggle which he saw would soon break out between Charles I and parliament, and fell back upon an old design of spending his days in religious retirement and in the practices of devotion. He had been offered one of the greatest heiresses in London for his wife, but declined, saying that he had determined to lead a single life. The animosities of public life caused him remorseful feelings, and he set to work to wind up his business concerns that he might withdraw from London. In this intention he was warmly seconded by his mother; and as his father had died in 1620 there was nothing to prevent him from carrying out his wishes.
First he looked out for a suitable place, and was attracted by Little Gidding in Huntingdonshire, of which the manor was for sale. Mrs. Ferrar bought it in 1624, and next year the outbreak of a plague in London hastened the preparations for the departure of the family. The village of Little Gidding had shrunk into one shepherd's hut, a ruined manorhouse, and a church which was used as a barn. When Mrs. Ferrar arrived and found workmen engaged in preparing the house for her use, she refused to enter till the church had been cleansed from its desecration. The church was soon repaired, and a neighbouring priest was employed to say daily service. On Trinity Sunday 1626 Ferrar was ordained deacon by Bishop Laud, and returned to Little Gidding, which he never again quitted.
As soon as it was known that Ferrar had taken orders he was offered preferment by many of his influential friends. But this was far from his mind, nor would he ever consent to proceed to priest's orders. His object was to lead a religious life in accordance with the principles of the Anglican church, and the other members of his family joined in his plan with astonishing unanimity. His brother John and his brother-in-law, John Collet, transferred their families to Little Gidding. As the Collet family numbered fourteen children, and John Ferrar had at least three children, the entire household comprised some thirty persons. For them Nicholas Ferrar laid down a rule of daily devotion, and himself acted as chaplain of a religious community. The church was restored, and was provided with everything necessary for that decency of divine worship which Laud was striving to introduce into the English church. Matins and evensong were said in the church; the rest of the canonical hours were said in the house. Two of the number watched and prayed the first half of the night, when they were succeeded by two others, so that the voice of prayer and praise might never be silent. The children of the two families were carefully educated, and the neighbouring children were welcomed to share in their instruction. Little Gidding was the school, the dispensary and infirmary of the district round about. On Sunday mornings the rustic children were invited to Little Gidding Church, and received each a penny and their Sunday dinner if they could repeat one of the psalms by heart. Within the house itself everything was arranged by rule, and there was a definite occupation for every hour. It was one of Ferrar's principles that every one should learn a trade, and the trade practised at Little Gidding was that of bookbinding. ‘An ingenious bookbinder was entertained to instruct the whole family in the art of binding, gilding, lettering, and pasting-printing by the use of the rolling-press.’ Visitors were welcomed if they chose to come, but nothing was allowed to interrupt the regular course of daily life within the house itself.
Naturally such an institution caused many comments, and the rising puritanism looked scornfully on this ‘protestant nunnery.’ But Bishop Williams of Lincoln found nothing to object to. There was no rule of celibacy or any attempt to bring it about; of the eight daughters of Mrs. Collet, six married and left Gidding. Many who were at first scandalised changed their opinion after a visit: