Bitten by a dog - do I report?

Last Tuesday, I was bitten by a neighbour's dog whilst walking past each other on a staircase. The dog bit through my joggers, left 2 punctures in my thigh. The owner pulled the dog back once he realised and checked on me, offered to replace the joggers which he did later that day. At first, I was in shock by the attack as it was completely unexpected and I didn't feel much pain, just some discomfort whilst stepping with the same leg. Later in the day I decided to go to A&E to get a tetanus shot and get it cleaned up.

The dog is some sort of pit bull/bully, generally not aggressive but the owner mentioned becomes defensive in close proximity.

Legally, I know I have the right to report to police and this would result in the dog being taken away to check on its behaviour, but I feel weird about doing this to a neighbour I see all the time (not friends or anything, just familiar face). The owner mentioned it's left a minor bite on someone else before, which may end up having bigger consequences on the dog if reported again... On the other hand, if dog continues doing this it will end up hurting someone else. My problem is I don't really want him to lose his dog as he also mentioned that's his "therapy" dog, but I also don't want it to hurt anyone - that's my main dilemma.

I have let the flat management company know about it as I wanted to check if CCTV is available in case I want to pursue, and they've spoken to the owner, however I have no idea what's been said.

The bite is currently bruised (5cm x 4cm), 2 minor punctures which is a level 3 bite. Naturally, I have also become more wary of dogs out in the public as I don't trust them any more.

Question is, should I be reporting it to police or let it go due it being minor? Is it viable to be claiming compensation for the injury? What's the right and moral thing to do here?