By Emma Hatton for RNZ

Residents whose homes were purchased by Waka Kotahi to make way for a new walking and cycling bridge across Waitematā Harbour have been left in limbo now the project has been scrapped.

The Government set aside $785 million for a second Waitematā Harbour crossing, and although the idea was dropped almost as soon as it had been announced - behind the scenes the wheels had already begun turning.

The Transport Agency Waka Kotahi paid just over $12m for four houses in Northcote.

David Hendersen still lives in his Princes St home, but is not sure how long that will last.

"I'm hoping they're going to offer the house back, as it appears to have no use whatsoever for NZTA.

"It's a family home - it's where I want to stay for the rest of my life."

But he said Waka Kotahi had not been clear about what it planned to do.

"We have asked and asked, and told them we want the place back. All we get is that they're thinking about it ... thinking about what?

"Either you're going to proceed with doing something and come up with a reason why you need the houses - and to date they haven't even come up with a reason why they need them."

In early 2020, as the country was entering level 4 lockdown for the first time, Waka Kotahi began approaching residents in Northcote about potentially buying their homes.

The transport minister would not go on to publicly announce plans to build a separate bridge for another year.

The project would have begun in just a few weeks but was scrapped six months ago because of a lack of public support.

Phil Moore refused to sell, saying Waka Kotahi came in with a lowball offer well below a valuation from four years earlier.

He was just about to begin major renovations on the property, but has had to put them hold ever since, leaving him with a quote that is no longer relevant.

"So the half a million dollar price that I got from my builder two years ago is no longer half a million. It could be $700,000, $800,000 - I don't know, but it will not be half a million and my builder told me that.

"So I'm saying to NZTA: why should I be out of pocket?"

He said the option Waka Kotahi had over his home has kept him in no man's land for two years.

"You imagine you've got your biggest asset and you can't do anything, you can't sell it. I can't liquidate my assets.

"If a family member got ill and I needed to pay urgently for hospitalisation I can't pay, I can't access my money."

He had managed to get some compensation from Waka Kotahi, but is thinking about taking court action to recoup his losses for the extra it will now cost him to do the renovations, as well as any reduction in valuation during the time he has been unable to sell.

Waka Kotahi spent more than $51m on the project, $12.2m of which was on buying property.

Transport Minister Michael Wood told RNZ that final decisions about the properties were yet to be made.

A Waka Kotahi spokesperson said the agency was continuing to explore options for walking and cycling across the Waitematā Harbour and it would not discuss plans, to protect residents' privacy.