Sorry I haven't explained what I mean properly. I don't want the controls to render on a new line. I would like the whitespace kept in the html output so it gives that single space. I've added the html below to better explain. This is what the controls in the placeholder output like, no whitespace between them even though there is whitespace / line breaks in the ASCX files as shown in my original post.
<label for="ContentPlaceHolderDefault_MainContent_MainContent_ContactForm_18_School" id="ContentPlaceHolderDefault_MainContent_MainContent_ContactForm_18_lblSchool">School (if applicable):</label><input name="ctl00$ctl00$ctl00$ctl00$ContentPlaceHolderDefault$MainContent$MainContent$ContactForm_18$School" type="text" maxlength="50" id="ContentPlaceHolderDefault_MainContent_MainContent_ContactForm_18_School" />* required* invalid