Expectations had been at all-time low for the Three Lions approaching Euro 2012, following Fabio Capello's resignation as manager and a number of late injury blows.
However, England opened their European Championships campaign with a respectable draw against France and have every chance of making the quarter-finals after beating Erik Hamren's men.
Richards told BBC Sport:
|12/1||England are 12/1 to win Euro 2012 with Paddy Power|
"It's down to Roy. He seems to have that little bit of a Midas touch."
Hodgson is yet to lose in four games as boss, having posted three wins and one draw, and Richards believes the former West Brom coach has put his own stamp on the England camp.
"He's brought something a little bit different,” Richards continued. “He's very progressive in his way.
"It's something that is a little bit unique - I've never seen anything like it before.
"Everybody seems to be in a great frame of mind. The mood is fantastic and the manager is in great form."