Property Purchase in High Flood Risk Area?

Hi Everyone, I am currently in the process of purchasing a house as a buy to let investment. However, the environmental report has come back and indicated this property is in a high flood risk area.

I had a conversation with the vendor, and he confirmed the property had never been flooded before, but the properties on the other side of the street has. In addition, the flood gate and flood wall has been installed to each property in this area by the city council a couple of years ago.

I also checked landlord insurance, it looks like there are only 3 or 4 insurance providers and all charged at a premium.

Hence, I am not sure what steps shall I take next:

1. Continuing with the purchase
2. Give the vendor a revised offer price
3. Stop the purchase due to the flooding risk

Any suggests are welcome or anyone with similar experience?

Many thanks,

Phoebe