diff --git a/rhodecode/lib/bleach_whitelist.py b/rhodecode/lib/bleach_whitelist.py
--- a/rhodecode/lib/bleach_whitelist.py
+++ b/rhodecode/lib/bleach_whitelist.py
@@ -67,7 +67,7 @@ markdown_tags = [
 
 markdown_attrs = {
     "*": ["class", "style", "align"],
-    "img": ["src", "alt", "title"],
+    "img": ["src", "alt", "title", "width", "height", "hspace", "align"],
     "a": ["href", "alt", "title", "name", "data-hovercard-alt", "data-hovercard-url"],
     "abbr": ["title"],
     "acronym": ["title"],
diff --git a/rhodecode/lib/markdown_ext.py b/rhodecode/lib/markdown_ext.py
--- a/rhodecode/lib/markdown_ext.py
+++ b/rhodecode/lib/markdown_ext.py
@@ -18,17 +18,85 @@
 # RhodeCode Enterprise Edition, including its added features, Support services,
 # and proprietary license terms, please see https://rhodecode.com/licenses/
 
+import re
 import markdown
+import xml.etree.ElementTree as etree
 
 from markdown.extensions import Extension
 from markdown.extensions.fenced_code import FencedCodeExtension
 from markdown.extensions.smart_strong import SmartEmphasisExtension
 from markdown.extensions.tables import TableExtension
-from markdown.extensions.nl2br import Nl2BrExtension
+from markdown.inlinepatterns import Pattern
 
 import gfm
 
 
+class InlineProcessor(Pattern):
+    """
+    Base class that inline patterns subclass.
+    This is the newer style inline processor that uses a more
+    efficient and flexible search approach.
+    """
+
+    def __init__(self, pattern, md=None):
+        """
+        Create an instant of an inline pattern.
+        Keyword arguments:
+        * pattern: A regular expression that matches a pattern
+        """
+        self.pattern = pattern
+        self.compiled_re = re.compile(pattern, re.DOTALL | re.UNICODE)
+
+        # Api for Markdown to pass safe_mode into instance
+        self.safe_mode = False
+        self.md = md
+
+    def handleMatch(self, m, data):
+        """Return a ElementTree element from the given match and the
+        start and end index of the matched text.
+        If `start` and/or `end` are returned as `None`, it will be
+        assumed that the processor did not find a valid region of text.
+        Subclasses should override this method.
+        Keyword arguments:
+        * m: A re match object containing a match of the pattern.
+        * data: The buffer current under analysis
+        Returns:
+        * el: The ElementTree element, text or None.
+        * start: The start of the region that has been matched or None.
+        * end: The end of the region that has been matched or None.
+        """
+        pass  # pragma: no cover
+
+
+class SimpleTagInlineProcessor(InlineProcessor):
+    """
+    Return element of type `tag` with a text attribute of group(2)
+    of a Pattern.
+    """
+    def __init__(self, pattern, tag):
+        InlineProcessor.__init__(self, pattern)
+        self.tag = tag
+
+    def handleMatch(self, m, data):  # pragma: no cover
+        el = etree.Element(self.tag)
+        el.text = m.group(2)
+        return el, m.start(0), m.end(0)
+
+
+class SubstituteTagInlineProcessor(SimpleTagInlineProcessor):
+    """ Return an element of type `tag` with no children. """
+    def handleMatch(self, m, data):
+        return etree.Element(self.tag), m.start(0), m.end(0)
+
+
+class Nl2BrExtension(Extension):
+    BR_RE = r'\n'
+
+    def extendMarkdown(self, md, md_globals):
+        br_tag = SubstituteTagInlineProcessor(self.BR_RE, 'br')
+        md.inlinePatterns.add('nl', br_tag, '_end')
+
+
 class GithubFlavoredMarkdownExtension(Extension):
     """
     An extension that is as compatible as possible with GitHub-flavored
@@ -51,6 +119,7 @@ class GithubFlavoredMarkdownExtension(Ex
 
     def extendMarkdown(self, md, md_globals):
         # Built-in extensions
+        Nl2BrExtension().extendMarkdown(md, md_globals)
         FencedCodeExtension().extendMarkdown(md, md_globals)
         SmartEmphasisExtension().extendMarkdown(md, md_globals)
         TableExtension().extendMarkdown(md, md_globals)
@@ -68,7 +137,6 @@ class GithubFlavoredMarkdownExtension(Ex
         gfm.TaskListExtension([
             ('list_attrs', {'class': 'checkbox'})
         ]).extendMarkdown(md, md_globals)
-        Nl2BrExtension().extendMarkdown(md, md_globals)
 
 
 # Global Vars
diff --git a/rhodecode/public/css/legacy_code_styles.less b/rhodecode/public/css/legacy_code_styles.less
--- a/rhodecode/public/css/legacy_code_styles.less
+++ b/rhodecode/public/css/legacy_code_styles.less
@@ -213,7 +213,6 @@ div.markdown-block pre {
 div.markdown-block img {
   border-style: none;
   background-color: #fff;
-  padding-right: 20px;
   max-width: 100%;
 }
 
@@ -274,6 +273,13 @@ div.markdown-block #ws {
     background-color: @grey6;
 }
 
+div.markdown-block p {
+    margin-top: 0;
+    margin-bottom: 16px;
+    padding: 0;
+    line-height: unset;
+}
+
 div.markdown-block code,
 div.markdown-block pre,
 div.markdown-block #ws,
diff --git a/rhodecode/public/css/readme-box.less b/rhodecode/public/css/readme-box.less
--- a/rhodecode/public/css/readme-box.less
+++ b/rhodecode/public/css/readme-box.less
@@ -115,11 +115,9 @@ div.readme_box pre {
 div.readme_box img {
   border-style: none;
   background-color: #fff;
-  padding-right: 20px;
   max-width: 100%;
 }
 
-
 div.readme_box strong {
   font-weight: 600;
   margin: 0;
@@ -152,6 +150,13 @@ div.readme_box a:visited {
 }
 */
 
+div.readme_box p {
+    margin-top: 0;
+    margin-bottom: 16px;
+    padding: 0;
+    line-height: unset;
+}
+
 
 div.readme_box button {
     font-size: @basefontsize;
diff --git a/rhodecode/templates/email_templates/base.mako b/rhodecode/templates/email_templates/base.mako
--- a/rhodecode/templates/email_templates/base.mako
+++ b/rhodecode/templates/email_templates/base.mako
@@ -337,7 +337,6 @@ text_monospace = "'Menlo', 'Liberation M
         div.markdown-block img {
             border-style: none;
             background-color: #fff;
-            padding-right: 20px;
             max-width: 100%
         }
 
@@ -395,6 +394,13 @@ text_monospace = "'Menlo', 'Liberation M
             background-color: #eeeeee
         }
 
+        div.markdown-block p {
+            margin-top: 0;
+            margin-bottom: 16px;
+            padding: 0;
+            line-height: unset;
+        }
+
         div.markdown-block code,
         div.markdown-block pre,
         div.markdown-block #ws,