Values jumped by a typical £36,032 – or 13% – to reach an average £313,150 in the Gloucestershire town during 2017, according to research by lender Halifax.
House prices in the UK increased by an overall average of 2.7% over the 12 months.
Bournemouth and Brighton home values also saw bumper growth of 11%.
Of the top 20 house price hotspots, 15 were in London and the South, including Crawley and Newham with growth of 10%.
In the North, Huddersfield had the highest growth with a 9% increase.
Biggest price falls in Scotland and Yorkshire
House prices were recorded as falling in 13 towns.
Values in Perth tumbled by 5.3% to an average £180,687.
Also in Scotland, Paisley and Dunfermline prices fell by 3.6% and 2.2% respectively.
In Stoke on Trent values dropped by 4% and in Wakefield by 2.9%.
Russell Galley, managing director of Halifax said: “Unlike last year, the top performers are not exclusive to London and the South East, with the top spot now belonging to Cheltenham in the South West, and towns in East Anglia, East Midlands, North West, Wales and Yorkshire and the Humber also making the list.
“The majority of towns in which house prices have dropped in the last year, are situated within Scotland or Yorkshire and the Humber.
“Generally speaking, property prices in these areas have been constrained by lower employment levels or relatively weaker economic conditions when compared to those areas that have seen house price growth,” he added.