THE most influential housing pressure group in the territory is facing closure at the end of the year due to a lack of funds. The Hong Kong People's Council on Public Housing Policy has only $120,000 left in the bank. The group was set up in the early 1980s by people unhappy with what they termed ''the disordered 1960s and 1970s'' when slums and sub-standard accommodation were commonplace. Virginia Ip Chiu-ping, the group's chief secretary, said government funding for improving conditions at that time was limited ''with slums and poor housing the result''. ''We had to do something to publicise these problems and embarrass the Government into action,'' she said. ''Protest was our only way of doing that.'' The Hong Kong People's Council on Public Housing Policy succeeded in having the post of Housing Authority chairman made independent of the Government, having the number of redevelopment schemes increased, and, in 1985, having single people allowed to join the waiting list for rehousing. The group was funded by religious organisations overseas which wanted to help poor people in the territory overcome hardship. ''Eighty-per cent of our funding came from overseas churches and 20 per cent from local donors,'' Miss Ip said. ''When Hong Kong stopped being regarded by them as part of the Third World, they started cutting our funding. ''We approached the larger charities, such as the Community Chest, for money, but they said we were not providing any direct service to the community. Fighting for residents' rights is too abstract a concept for them. We have been approached by political parties to join forces with them, but I believe as a pressure group we can only function effectively if we are independent.'' In April, tenants and members of the pressure group stormed the Housing Authority's headquarters to prevent the eviction of people from Kwai Shing Estate at Tsuen Wan. Seventeen banner-waving protesters gained entry through a rear door of the building, which had to be closed for three hours. A Housing Authority spokesman, commenting on the demise of the group, said: ''Generally we are open to all views and comments on public housing issues. No doubt such views and comments will continue to be forthcoming.'' Miss Ip said she was not pleased that the group would have to close. ''But it will come at a time when many districts have their own housing concern groups,'' she said. ''We've achieved what we set out to do . . . but there's still more to be accomplished.'' Ho Hei-wah, director of the Society for Community Organisation, a pressure group which concerns itself with housing problems facing the elderly and poor, said the closure of the People's Council on Public Housing Policy would be a blow to the public, ''especially those who are not so well-off.'' Housing Authority committee member Pao Ping-wing was one of the group's founders and an active campaigner in the 1970s. ''I regret hearing about the impending closure,'' he said. ''I have been impressed by the efforts made by them and the opinions they have expressed on public housing policy over the years. ''Though some people may think the end of [the group's] protests will be good news to the Housing Authority, I believe reasonable protests are a kind of reflection of the ideas of the public.''