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"cause for despair" is correct and usable in written English.
You could use it in a sentence to indicate that something is dire or hopeless. For example, "The amount of pollution in the river is a cause for despair."
Exact(46)
This is no cause for despair.
No one owns it, a cause for despair to some.
End zone dances are not a cause for despair.
In most circumstances, that announcement would be cause for despair.
Whether that is really cause for despair is another issue.
But more than ever, we have no cause for despair.
Similar(14)
Causes for despair, all, but Susannah belonged, or so I had believed, to the "Good morning heartache, sit down" school of her idol, the great stoic thinker Billie Holiday, who disarmed despair with familiarity, even with hospitality.
Perhaps then the outcome of massive international deals, like the TPP, that re-set the rules about how the people of the world trade with each other will be a cause, not for despair and outrage, but celebration.
I'm not sure I follow the logic, but the notion that the more you write the less likely you are to be read is undoubtedly cause for writerly despair.
In the Japanese Buddhist tradition, awareness of the fundamental condition of existence is no cause for nihilistic despair, but rather a call to vital activity in the present moment and to gratitude for another moment's being granted to us.
Its snappy graphics imply that sadness doesn't really need a reason and that depressed folks don't have to look very far to find causes for their despair.
More suggestions(20)
cause for distress
cause for anguish
cause for frustration
cause for gloom
cause for despondency
cause for misery
reason for despair
cause for depression
warrant for despair
cause for disappointment
cause for comfort
cause for delay
cause for celebration
cause for mortification
cause for alarm
cause for complacency
cause for worry
cause for concern
cause for beriberi
cause for gratitude
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com